Bitcoin’s price drop and the ripple effect: What’s next for crypto?

The crypto market has been on a rollercoaster lately, with Bitcoin (BTC) taking center stage in the latest turbulence. Following President Trump’s announcement of reciprocal trade tariffs, Bitcoin dipped below $83,000 before a slight bounce-back, dragging the entire market, including XRP-down. 

Traders are now trying to gauge the long-term impact of these developments, with speculation swirling about how major players like the Federal Reserve and institutional investors might react. But is this just a temporary setback, or are we seeing a more significant shift in the crypto landscape?

Bitcoin’s wild ride: Trump tariffs, rate cuts, and market jitters

Bitcoin was climbing in the lead-up to Trump’s tariff announcement, but once the news hit, the price tumbled. The uncertainty surrounding global trade policies has left traders scrambling to reposition themselves, with short-term interest-rate futures now pricing in a 64.8% chance of a Fed rate cut in June from 60% before the tariffs were announced.

Why does this matter? If the Fed starts cutting rates to stave off a recession, it could flood the market with dollars, which could fuel renewed demand for BTC. Some analysts believe that if Bitcoin holds above $76,500 by mid-April, it could signal the end of this downturn, potentially setting up another rally toward the $100K mark and beyond.

Meanwhile, Glassnode’s latest report suggests Bitcoin is showing early signs of a bear market, with many holders now sitting on unrealised losses. The current market shows typical bear market signs: weakening momentum, shrinking profitability, tighter liquidity, and negative sentiment. Investors are taking losses, driven by fear.

 Historically, bear markets end with capitulation, setting the stage for recovery. As of 30 March, 4.7M BTC were held at a loss, indicating the market may be nearing exhaustion but still has the potential for more pain before bottoming out.

XRP price prediction: Market speculation and the American Express rumors

The ripple effect (pun intended) of Bitcoin’s decline has been particularly harsh on XRP, which dropped 5% following Trump’s tariff news. This wiped-out gains fuelled by Ripple’s confirmation that RLUSD, its new stablecoin, is now integrated into Ripple Payments.

Adding to the XRP buzz, rumours have been swirling about a potential partnership between Ripple and American Express to introduce a crypto-backed debit card. The speculation, fuelled by social media figures like XRP Chancellor and “Alts King,” suggested that such a partnership could be a game-changer for XRP adoption.

But let’s separate hype from reality. While Ripple and American Express collaborated in 2017 to improve cross-border payments, there has been no official confirmation of a crypto debit card partnership. Investors should remain cautious and rely on company statements rather than social media speculation.

Technical outlook: A look at crypto market volatility?

The broader crypto market is still reacting to macroeconomic events, and Bitcoin remains the key indicator of where things go next. If BTC stabilises and climbs back toward $100K, it could lift the entire market, including XRP. However, if the bearish momentum continues, we may see further corrections before the next leg up.

One thing’s for sure: Crypto is no stranger to volatility, and while rumors can create short-term excitement, real value lies in confirmed developments and macroeconomic trends. 

At the time of writing, BTC has bounced back above the $83,000 mark. Bearish sentiment appears dominant as prices remain below the moving average. However, prices touching the lower Bollinger band hints at oversold conditions- signaling a potential reversal. RSI rising steadily also supports the reversal argument. Key levels to watch on the upside are $85,000 and $88,500. On the downside, the key levels to watch are $81,300 and $80,000. 

Bearish sentiment also dominates the XRP daily chart. However, prices almost touching the lower Bollinger band hints at oversold conditions- signalling a potential reversal. RSI rising smoothly also hints at building upward pressure. Key price levels to watch on the upside are $2,230 and $2,400. On the downside, key support levels are $1.964 and $1,899. 

You can participate in and speculate on the price trajectory of BTCUSD and XRPUSD with a Deriv MT5 or Deriv X account.